Property insurance terms and related concepts
specific coverage
property insurance that provides $100,000 coverage for a building and $50,000 coverage for personal property at a single location is called
unoccupied
An insured relocated to another state for work. However, she still owns and insures a house in this state, but has had no one living in it for 3 months. she is also storing some furniture and clothes in the house. From an insurance stand point the insured's house is considered
it is imposed on defendants engaged in hazardous activities.
all of the following statements described the concept of strict liability EXCEPT
Full replacement of property at its current cost, new and without reduction for depreciation
replacement cost is defined as
Subrogation
The legal process that gives the insurer, after payment of a loss the right to seek recovery from a third party that was responsible for the loss is known as
vicarious liability
When a parent is required to pay for damaged caused by his or her children, this is an example of
$30,000
an insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?
$50.000
if a liability policy had split limits of 50/100/30, what is the maximum amount that would be payable in the event of injury to a single person
encourage the insured the insure the property closer to its full value.
what is the purpose of the coinsurance clause found in property insurance policies?
absolute liability
what type of liability would a person who owns wild animals have?
negligence that leads to an injury
which of the following does the term proximate cause refer to
open peril policy
What type of insurance policy insures against all risks of loss that are not specifically excluded by the policy?
Agreed Value
Which of the following types of valuation works best for property whose value does not fluctuate much?
stated amount
a property insurance policy that is not subject to any coinsurance requirements but has set amount of insurance scheduled for the property would use what loss vacation method?
Restores an insured person to the same financial state as before the loss
in case of a loss, the indemnity provision in insurance policies
the failure to use reasonable and prudent care
negligence may be defined as
burglary
the crime of forced entry into the premises of another by a person of persons with felonious intent is defined as a
to pre-establish the amount of coverage available for property items that are difficult to value
which of he following best expresses the purpose of a stated value contract?
loss of use
which of the following coverages in dwelling homeowners policies is for indirect loses
A sudden, unplanned and unexpected event, not under the control of the insured, resulting in injury or damage neither expected not intended
which of the following definitions best defines the term "accident"?